China Mobile Ltd, the world's biggest mobile carrier, said on Sunday that its investment focus remained on the more attractive valuations in emerging markets, despite the higher risks involved.

China Mobile was not looking at North America or Europe, where valuations were too high, but rather in Asia and Africa where there were more opportunities, Chief Executive Wang Jianzhou, told a meeting of the World Economic Forum.

China Mobile bought Pakistan's Paktel Ltd for $400 million last year and has spent an additional $1.2 billion to expand its network, but has not yet begun to see returns on that investment, Wang said.

"We have a lot of risks, we have a lot of troubles," Wang said, referring to his company's investment in Paktel.

Wang said daily power shortages in major cities and high taxes kept the cost structure high in Pakistan, while revenue has not yet begun to reflect the investment.

"The ARPU for us is $12/month, but in our Pakistani company it is only $3/month," said Wang, explaining the difference in average revenue per user, a key industry benchmark.

But in spite of the hurdles of emerging markets, Wang said China Mobile was not a financial investor and did not need to see a positive return in the short term.

"We are not a financial company, we are not private equity, we are a telecom operating company," he said.

"We think the market situation in markets like Pakistan are very similar to those several years ago in China," said Wang.

($1=6.82 yuan)

Source:Reuters